Building wealth isn’t just about saving money — it’s about saving smart. Our Savings Forecast Tool is designed not just to project numbers, but to help you understand the fundamental principles of financial planning — including liquidity, account prioritization, retirement funding, and long-term savings discipline.
This tool is ideal for those who want to see where their savings can go over time and build a plan rooted in real-world financial best practices.
The Guiding Principles Behind This Tool
Step 1: Maximize Your High-Yield Savings Account (HYSA)
Before you invest, you need a strong cash foundation. That means storing your emergency and short-term savings in a high-yield savings account — ideally one that’s FDIC insured:
- FDIC insurance limit: $250,000 per depositor, per institution
- For married couples: You may be able to protect up to $500,000 by splitting accounts
High-yield savings accounts offer virtually no risk and allow for quick access in case of emergencies. Our forecast model prioritizes maxing out this account first before moving any contributions into more volatile investment vehicles.
Step 2: Roll Over Extra Savings to Brokerage AccountsSavings to Brokerage Accounts
Once your savings account reaches its target cap, the tool assumes additional contributions roll into a taxable brokerage account, where you can invest in:
- ETFs
- Mutual funds
- Stocks and bonds
These offer higher growth potential but come with greater risk. The tool helps you visualize when and how this transition might happen based on your contribution rate and current savings.
Step 3: Don’t Forget Retirement Savings — and Use Employer Matching Wisely
Long-term wealth building hinges on consistent retirement contributions. This includes funding accounts such as:
- 401(k)
- Traditional or Roth IRA
- Employer-sponsored plans like 403(b)
Our suggested baseline is to invest at least 15% of your gross salary into retirement. If your employer offers a match, contribute enough to capture the full match first. Then:
- You can reduce your personal retirement contributions accordingly
- Redirect any excess savings into shorter-term financial goals using a brokerage or savings account
Our tool doesn’t directly manage retirement accounts but encourages you to plan for them in parallel.
Step 4: Keep Adjusting Your Plan as Life Changes
Smart savers don’t just think about retirement — they also plan for mid-term goals like:
- Buying a home
- Starting a business
- Large life events (e.g. having kids, education)
By maintaining flexibility in savings while still investing long-term, you’re better positioned to navigate life’s changes. Our tool helps forecast that balance across account types.
A Planning Tool, Not an Investment Strategy
⚠️ This tool is meant for planning, not for investment advice.
It does not tell you what to invest in — only how your savings might grow under certain assumptions.
If you’re looking for a tailored investment strategy, consider using this forecast as a starting point and consult a certified financial advisor or investment manager who can help you build a personalized portfolio based on your goals and risk tolerance.
Important Disclaimer
This calculator provides a simplified projection and does not account for major one-time financial events such as:
- Large purchases or life changes
- Withdrawals, disbursements, or market corrections
- Shifting goals or income fluctuations
If something significant changes in your life or finances, you can simply revisit the tool with your updated balances and contribution plans. It’s designed to be flexible and recalibrated as needed.
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